Remind me, what's an executive order?

Executive orders are instructions bought by the president of the United States that direct federal government agencies and authorities to take particular actions. While they are not laws, they have the force of law and job effect how existing laws are implemented or implemented.

Executive orders affect the agencies of the executive branch and for that reason do not require the approval of Congress. They should be within the president's constitutional authority and might be challenged in court if considered unconstitutional.

Executive orders may be rescinded, reversed by future presidents, or challenged in court, and enforcement concerns can change during any administration.

The new administration's actions have far-reaching effects beyond executive orders. For more on mitigating danger, international services can seize brand-new opportunities by staying nimble.

Implications of the executive orders for DEI initiatives and work in private-sector organizations

On Jan. 21, President Trump provided "Ending Illegal Discrimination and Restoring Merit-Based Opportunity," which reverses numerous prior executive orders and memoranda, including Executive Order 11246 (EO 11246) signed in 1965 by President Lyndon B. Johnson.

EO 11246 needed every federal government contract to include a declaration that the specialist will not victimize any worker or candidate for employment based upon race, creed, color, or national origin.

Despite President Trump's new executive order, the underlying federal anti-discrimination law stays unchanged for private-sector workers.

However, the executive order signals that there may be changing enforcement priorities in the new administration. The order directs all federal firms to "combat unlawful private-sector DEI preferences, mandates, policies, programs, and activities."

In December 2024, President-elect Trump tapped Harmeet K. Dhillon to lead the Justice Department's civil liberties office, indicating his record of "taking legal action against corporations who use 'woke' policies to discriminate versus their workers."

In addition to revoking EO 11246, the Jan. 21 executive order instructs each company of the federal government to determine "as much as 9 possible civic compliance investigations" of private sector entities within 120 days of the order - by May 21, 2025.

The private sector entities subject to these examinations include publicly traded corporations, large nonprofits - including bar associations - big foundations, and universities whose endowments exceed US$ 1 billion.

Organizations that may be targeted should ask:

- What is my organization's threat tolerance?
- How will staff members respond to the company's actions?
- How will consumers and stakeholders react?
What in-house counsel should think of:

Assess any federal agreements and grants

- Determine if they contain any terms or conditions connected to DEI that may contravene current laws and regulations
Review your company's existing DEI policies to comprehend your risk

- Prepare for increased scrutiny and potential civil compliance examinations
Document, document, file

- Hiring and recruitment procedures
- Performance examinations and promo choices
- Training materials and presence records
- Any modifications to DEI policies
Implications for federal specialists

Among other procedures, the Jan. 21 Executive Order requires the heads of federal firms to include particular terms in every agreement or grant award:

- "A term requiring the legal counterparty or grant recipient to agree that its compliance in all respects with all relevant Federal anti-discrimination laws is material to the federal government's payment choices for functions of section 3729( b)( 4) of title 31, United States Code"; and
- "A term requiring such counterparty or recipient to license that it does not operate any programs promoting DEI that breach any applicable Federal anti-discrimination laws."
Section 3729 of title 31 of the United States Code is an arrangement of the US False Claims Act, a federal law that imposes civil charges on those who make incorrect claims to the government in order to influence the payment or receipt of cash or home.

The accreditation requirement carries a prospective threat of litigation for federal specialists under the False Claims Act. In-house attorneys at federal specialists hence have a particular interest in guaranteeing their organization's policies, treatments, practices, communications and content, are reviewed. Assess if changes are required to mitigate the threat of litigation.

Executive orders targeting prohibited immigration

President Trump's initial flurry of executive orders included numerous - such as the Jan. 20 executive order "Protecting the American People Against Invasion" - aimed at restricting unlawful migration and deporting unlawful immigrants. The orders require enforcement actions by federal firms versus illegal migration.

In-house legal representatives should think about examining their company's employment eligibility verification procedure. They may likewise wish to consider whether the company is prepared for reacting to an I-9 audit or a worksite enforcement action (or raid) by migration enforcement firms.

Sectors that may be especially impacted consist of agriculture, hospitality, and other industries such as building and construction. From 2020-2022, 42 percent of crop farmworkers held no work permission, according to the US Department of Agriculture. The American Immigration Council estimates that more than one million undocumented immigrants work in hospitality, representing 7.1 percent of the labor force.

In-house counsel have an important role to play in establishing and making sure consistent application of the Form I-9 and E-Verify guidelines the federal government uses to implement and implement immigration law, job shares John W. Mazzeo, AGC, director of I-9 and E-Verify compliance for Vertical Screen, Inc., job in a 2024 ACC Docket post.

Take a look at useful checklists of considerations relevant for internal attorneys on the subject of I-9 audits and worksite enforcement actions.

If a company does not comply with a civil administrative warrant presented by US Immigration and Customs Enforcement (ICE), there is a risk that the company could begin an I-9 audit if they felt a company was obstructing their requirement to jail a non-citizen worker, or in some cases acquire a criminal warrant from a judge if actions support it.

Steps internal counsel ought to think about:

- Determine the number of staff members might potentially be impacted
- Review your company's employment eligibility verification process
- Ensure your company's process is documented and defensible
- Implement and implement clear policies
- Monitor legal developments, consisting of lawsuits and enforcement assistance
Mitigate danger, remain active, and take brand-new opportunities

The recent executive orders will considerably impact international organizations. Legal departments and internal counsel will need to assist their organizations comprehend and adjust to modifications, making sure compliance or litigating when proper.

Many of the brand-new administration's decisions will play out over the coming months, consisting of new executive orders and legal difficulties. The Docket will continue to keep track of advancements. Global in-house attorneys should get ready for fast advancements associated with:

Trade and . On Feb. 1, President Trump ordered the imposition of a 25-percent tariff on imports from Canada and Mexico, and 10-percent extra tariffs on imports from China. The former 2 were both delayed by a month as the administration takes part in settlements. Meanwhile, China has started its own retaliatory measures on US items. He had previously revealed his intent to impose 25-percent escalating tariffs on Colombia (an action that was eventually not taken).
Technology and intellectual home. One of the president's very first actions was to rescind the previous administration's AI executive order. The brand-new administration also extended a grace period for TikTok's impending ban, sending waves throughout the innovation sector, both in the United States and abroad.
Energy, environment, and health. The president also withdrew the United States from the Paris Climate Agreement and the World Health Organization, job putting an early emphasis on American energy independence and far from the previous administration's global sustainability efforts.
Steps internal counsel ought to consider:

- Assess the effect of potential tariff increases on supply chain and business continuity.
- Assess the organization's reliance on social networks platforms, such as for marketing functions, and the potential requirements to backup social media information and job possessions in the occasion their preferred platform ceases to be readily available.
- Consider how developments in the new administration's approach to environmental, sustainability and governance issues may affect the company's ESG technique.
Disclaimer: The information in any resource in this website ought to not be construed as legal suggestions or as a legal viewpoint on particular facts, and must not be considered representing the views of its authors, its sponsors, and/or ACC. These resources are not planned as a conclusive statement on the subject addressed. Rather, they are meant to act as a tool providing practical assistance and referrals for job the busy internal professional and other readers.